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2 Factors That Can Fuel Truck Maker Paccar's Growth; Wait For A Drip

The latest truck order numbers released by ACT Research show continued strength in the North American market, which was highlighted by Paccar (PCAR), the second largest North American heavy-duty truck manufacturer when the company released its fourth quarter results last week.

In January, the Class 8 truck orders for North America climbed by 2.4% year-over-year and dropped by 19.7% from the previous month to 35,400. Credit Suisse's analyst Jamie Cook wrote in a research report emailed to me that the numbers were largely in-line with expectations. Once again, the growth was due in large part to improving economy and strong carrier profitability. Cook is expecting similar numbers for February in the mid-30,000 range, albeit February is usually around 4% weaker than January due to the seasonal impact.

Paccar has recently reported 18% year-over-year increase in net income to $394.3 million, or $1.11 a share on the back of 11% increase… Read More …